FOUR KEYRETAIL TRENDS

FOR 2013RETAIL

TAP

Powered by Shopper Sciences

TRENDS ACROSS THE PLANET

RETAIL

TAPRetail TAP has been curated to showcase innovation and design in Retail. We’ll aim to bring you the most inspiring articles from around the globe and focus on implementations which are unique enough to make a big impact.

This edition focuses on four key retail trends for 2013:

TEC-TONIC SHIFT Forget consumers. Forget customers. Today it’s about the shopper.

C2C

Consumers aren’t just talking to each other, they are selling, trading, advising one another.

INCONSPICUOUS CONSUMPTION Increasingly retailers and shoppers are finding ways to lighten the load.

MAN-SUMERISM The rise of male shopping behaviour.

CONTENTS

ReTAIl TAP // ConTenTs

TWo sTATes: usInG & deCIdInG

nexT Gen MARkeTPlACe

ReCYClInG AT ReTAIl

Men don’T jusT shoP. TheY BuY.

RIse oF shoPPeR MARkeTInG

PoP uP ReTAIl 2.0

InVIsIBle BuT PoWeRFul

Men ReseARCh, WoMen shARe

Re-AlIGnInG ARound dIGITAl shoPPeR ReAlITIes

dIsInTeRMedIATInG BRAnds

loYAlTY Is noT A FRee T-shIRT

MARkeTInG To Men

The ReAl PuRChAse Funnel

C2C: The neW sAles FoRCe

MAn-suMeRIsM

GeTTInG In TouCh

C2C

InConsPICuous ConsuMPTIon

ReCessIonARY ResIduAls

The eColoGY oF shoPPeR dIAloGue

loYAlTY, BRAnd equITY “keePInG uP WITh The joneses”

“RenAIssAnCe MAn” ReVIsITed

sMART shoPPeR PlATFoRMs

eCo PACkAGInG

BeYond The 9–5 GRInd

02

11

19

27

03

12

20

28

04

13

21

29

05

14

22

30

07

15

23

08

16

24

09

17

25

ConsuMeR CuRATed CATAloGue

sToRe BRAnd equITY

Men shoP dIFFeRenTlY

10

18

26

TeC-TonIC shIFT

01

01

ReTAIl TAP //

TEC-TONIC SHIFT

TeC-TonIC shIFT.

Forget consumers. Forget customers. Today it’s about the shopper.

02

ReTAIl TAP //

TwO STATES:USINg & dECIdINg

TWo sTATes: usInG & deCIdInG

What drives shoppers to say “yes”?

USINg dECIdINg

03

ReTAIl TAP //

RISE OFSHOPPER MARkETINgsource: GMA/Booz

RIse oF shoPPeR MARkeTInG

Annual Shopper marketing spend:

$50b ANd gROwINg

04

ReTAIl TAP //

RE-AlIgNINg AROUNddIgITAl SHOPPER REAlITIES

Re-AlIGnInG ARound dIGITAl shoPPeR ReAlITIes

Percentage of brand marketers who think:

67% 54% 80% 45% 42%

need a more formalised process to measure

digital shopper effects

67% 54% 80% 45% 42%

need to establish better planning processes for

dsM campaigns

67% 54% 80% 45% 42%

excited at the new opportunities to measure dsM

67% 54% 80% 45% 42%

getting more data with dsM than with traditional

marketing efforts

67% 54% 80% 45% 42%

better linkage between media results and sales

results

05

ReTAIl TAP //

THE REAlPURCHASE FUNNEl

The ReAl PuRChAse Funnel

The real purchase funnel is chaos. But increasingly, we can reveal where shoppers go at each stage of the purchase journey- and identify where the greatest patterns are to engage them along their decision path.

• each green line represents one individual shopper

• Clearly, shoppers do not behave in programmed, linear modes

• shopper path is NOT a funnel

06

ReTAIl TAP //

THE REAlPURCHASE FUNNEl

The ReAl PuRChAse Funnel

• Brands must understand the most common purchase paths.

• Entry points reveal where shopping begins.

• Circles indicate most used information sources.

• Color indicates degree of influence of information sources

07

ReTAIl TAP //

C2C

C2C.

Consumers aren’t just talking to each other, they are selling, trading, advising one another.

08

ReTAIl TAP //

THE ECOlOgy OFSHOPPER dIAlOgUE

The eColoGY oF shoPPeR dIAloGue

b2b & b2C

MEET C2C

Social media has re-written the rules of trade, opening up a world where shoppers can buy, sell, and trade...to each other.

09

ReTAIl TAP //

SMARTSHOPPER PlATFORMS

sMART shoPPeR PlATFoRMs

Access to information is making shoppers smart – really smart. Knowledge sharing sites are increasing in sophistication and number. Forget Google or Wikipedia – these sites are the future of decision making, accessible by shoppers at every step of the purchase journey.

decide.com tells shoppers if they should purchase or wait for prices to drop.

Fooducate rates food products based on nutritional and expert information.

10

ReTAIl TAP //

CONSUMERCURATEd CATAlOgUE

ConsuMeR CuRATed CATAloGue

Burgeoning photo sharing site Pinterest has been called a place to “shop without money.” But it’s also a self created consumer catalogue and showroom.

11

ReTAIl TAP //

NExT gENMARkETPlACE

nexT Gen MARkeTPlACe

Online craft site, Etsy has provided artists and craftmakers with a thriving marketplace to sell their goods. Smart retailers like WestElm are inking deals to bring online shoppers to their stores by featuring and selling Etsy artist goods.

etsy is the 58th most popular website in the usA.

12

ReTAIl TAP //

POP UPRETAIl 2.0

PoP uP ReTAIl 2.0

A confluence of trends has produced a thriving “pop up” economy. Whereas previously pop up stores and kiosks were the domain of big brands seeking to expand their foot print, today they are led by entrepreneurial mini-preneurs.

“The maker economy allows amateurs to seamlessly become professionals and test their concepts before investing in brick-and-mortar.”

nicholas Russel Ceo, ephemeral labs

13

ReTAIl TAP //

dISINTERMEdIATINgbRANdS

dIsInTeRMedIATInG BRAnds

Shoppers aren’t just talking to each other about brands, they are creating their own products and services - and disintermediating brands in the process.

on any given night in nYC, social travel site, AirBnb has more rooms booked than the largest hotel in nYC.

• over 10 million nights booked

• 192 countries

• 168 million social Connections

14

ReTAIl TAP //

C2C: THE NEwSAlES FORCE

C2C: The neW sAles FoRCe

San Francisco start up, Quri enables brands to tap a nationwide, shopper-powered mobile field force that intends to be a scaleable solution for brands to measure and optimise in-store.

Needle is a promising Fan-sourcing Sales Platform that recruits and trains passionate brand fans to provide real-time sales support via the cloud.

mobile computing + geo location + shopper field force = real time intelligence

15

ReTAIl TAP //

INCONSPICUOUS CONSUMPTION

InConsPICuous ConsuMPTIon.

Increasingly retailers and shoppers are finding ways to lighten the load.

16

ReTAIl TAP //

lOyAlTy, bRANd EqUITy“kEEPINg UP wITH THE jONESES”...

loYAlTY, BRAnd equITY “keePInG uP WITh The joneses”...

What do they all have in common? They are all casualties of the recession and the need for people to re-evaluate what matters most. Inconspicuous consumption, where maximising resources is a primary driver of purchase decisions, is the reality.

$27average monthly spend

on groceries up $27 from 2007 to 2011.

two in five shoppers purchasing more store brand or generic items

three in 10 respondents cut back on bakery items,

candy, desserts and magazines/books/dVds

one in four have cut back on prime cuts of

meat/seafood

$27$27$27

17

ReTAIl TAP //

ECOPACkAgINg

eCo PACkAGInG

Reinforce differentiators. In unexpected places. Ketchup is ketchup… and a way to conserve resources.

Puma’s sustainable shoe box and reusable bag looks cool and saves:

• 8,500 tons less paper

• 20 million Megajoules of electricity

• 1 million litres less of fuel oil used and 1 million litres of water

• 275 tons of plastic

2008 2009 2011

333738

2018

17

111111

717474

636565

6770

69

good alternative to name brands

quality as good as name brands

usually extremely good value for the money

some are higher quality than name brand

for people on tight budgets and can’t afford the best

don’t feel comfortable serving to guests

18

ReTAIl TAP //

STOREbRANd EqUITy

sToRe BRAnd equITY

More than half of grocery shoppers now regularly buy store brands across all categories of groceries.

The one exception: Pet Food

19

ReTAIl TAP //

RECyClINgAT RETAIl

ReCYClInG AT ReTAIl

Thrifty IS mainstream. Goodwill Industries and Savers are aggressively expanding nationwide, causing reluctant retailers to take notice.

• number of resale shops has increased by 7% in past year

• Goodwill hit $4 billion in revenue in 2011 (10% growth since 2007)

• 20% of people shop in thrift stores regularly, compared with 14% in 2008

20

ReTAIl TAP //

INvISIblEbUT POwERFUl

InVIsIBle BuT PoWeRFul

Retailers are using lightweight and invisible technologies like Euclid Elements to better able their sales associates to engage with their best customers.

saks Fifth Avenue teamed up with start up euclid elements to create a smartphone app that would be loaded on associates’ phones and would identify when loyal shoppers (who had opted in) entered the store, and would tell the associate where in the store they were located using the customer’s mobile wifi signal.

18average number of loyalty programs per US household:

less than half are active:

8

PROGRAM OPT-IN

RECOGNITION/FAME

SOCIAL CURRENCY

A VOICE IN BRAND DECISIONS

VIRTUAL GOODS

EXCLUSIVE ACCESS

21

ReTAIl TAP //

lOyAlTy IS NOTA FREE T-SHIRT

loYAlTY Is noT A FRee T-shIRT

Shoppers want more than just free ‘stuff.’ Savvy retailers and brands are shifting from extrinsic to intrinsic rewards - rewarding all shopper interaction, instead of just purchase.

Most loyalty MeMbers are unsatIsFIed wIth the value

oF loyalty PrograMs(grocery/drug Most satIsFIed at only 42%)

22

ReTAIl TAP //

MAN-SUMERISM

MAn-suMeRIsM.

The rise of male shopping behaviour.

At the height of the recession, unemployment was more than 2% higher for men

3

2006

4.6

2007 2008 2009 2010 2011 2012

4.6 4.7 4.5

6.15.4

10.4 10.5

8.6

9.4

8.4 8.3 8.18.1

men women

23

ReTAIl TAP //

RECESSIONARyRESIdUAlS

ReCessIonARY ResIduAls

While the job market for men has recently improved, the lasting effects of the recession, have altered the traditional “provider” paradigm.

39% 80%

of women out-earn their male spouses

of men are ok with it

39% 80%

24

ReTAIl TAP //

“RENAISSANCE MAN”REvISITEd

“RenAIssAnCe MAn” ReVIsITed

Whether by choice or need, being exposed to new roles such as child care, shopping and household activities has created a new generation of men who embrace their new roles and the impact they can make.

40% 44% 86%

of men are the primary grocery shopper in the

household

of men say they equally share in house cleaning

of men agree being a man = doing what is

necessary to keep the household running

40% 44% 86%40% 44% 86%

25

ReTAIl TAP //

bEyONd THE9–5 gRINd

BeYond The 9–5 GRInd

Men increasingly evaluate their successes in life in areas beyond career and finance.

67% 42%67% 42%

feel their lIFe is the same or better than

it was prior to the recession

feel their FInAnCIAl situation is the same or

better than it was prior to the recession

26

ReTAIl TAP //

MEN SHOPdIFFERENTly

Men shoP dIFFeRenTlY

“Subscription Commerce” sites such as Trunk Club, Mr. Porter and Manpacks address men’s expanded interest in style and grooming, while P & G is setting up “Man Aisles” within physical stores. All focus on conveniently solving a need.

SHOPPING ACTIVITY: functional

PURPOSE: solve a problem/need

PRIORITIES: convenient, informative

$81$59MENWOMEN

8%2%MEN’SWOMEN’S 11%

27

ReTAIl TAP //

MEN dON’T jUST SHOP.THEy bUy.

Men don’T jusT shoP. TheY BuY.

Whether by choice or obligation, men are doing more shopping than they have in the past. Disenfranchised no longer, they are empowered by technology and a growing recognition of the contributions they make.

average spent “yesterday” in stores, gas stations, restaurants, or online

increase in men’s clothing sales last year increase in men’s facial care sales last year…yes, facial care

28

ReTAIl TAP //

MEN RESEARCH,wOMEN SHARE

Men ReseARCh, WoMen shARe

Males use more sources on average than females, but tend to share less than females after purchase.

average source node usage:

MALES (n=2004) FEMALES (n=2999)

average number used:

SMOT participation i.e. sharing information about purchase with F&F or via Facebook, Twitter, etc:

17%

11.6 10.2

15%

56% 61%

29

ReTAIl TAP //

MARkETINgTO MEN

MARkeTInG To Men

At home and in store... men are increasingly shopping for themselves and their families. Empowered by technology, men have embraced mobile and social media to conveniently inform their decisions.MAKE IT EASY: Shopping is need based for most men. The process should be simple and direct.

BE INFORMATIVE: Product info, reviews, comparisons, availability and store information.

HAVE FUN, BUT DON’T INSULT: A recent Huggies campaign backfired for implying Dads were unfit parents.

72% 26% 76%

research price online before making a purchase

more likely than women to scan a barcode in store

men are favoring digital sources—and not their

televisions—when looking to be entertained

72% 26% 76%72% 26% 76%

ReTAIl TAP //

gETTINgIN TOUCH

EMAIl US yOUR NEwS & vIEwS

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GeTTInG In TouCh

sources: GMA/Booz, shs, appapeal.com, ephemeral labs, airbnb.com, MaxPoint Interactive, 3IGInsight, nielsen, usA Today, Colloquy, Bureau of labor statistics, Men’s health, Gfk Roper Reports, ksdk, spike network, shopper sciences, scanbuy, AskMen.com

Contributing Momentum offices: us, uk